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Productivity and Economic Growth: The Case of Chile

In: Economic Growth: Sources, Trends, and Cycles

Author

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  • Harald Beyer

    (Centro de Estudios Públicos)

  • Rodrigo Vergara

    (Banco Central de Chile)

Abstract

After a decade and a half of economic growth above 7% per year, the Chilean economy has been growing at rates below 3% during the last five years. In this article we suggest that in order to produce a new surge in economic growth, Chile needs a productivity shock arising from economic policy initiatives aimed at improving economic efficiency and institutions. Although Chile has a good record in both, it is still possible to have an upgrade. We run a cross section regression in which the dependent variable is total factor productivity. We conclude that modest changes in the country’s policies and institutions may increase Chile’s rate of growth in 1.5 percent points.
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Suggested Citation

  • Harald Beyer & Rodrigo Vergara, 2002. "Productivity and Economic Growth: The Case of Chile," Central Banking, Analysis, and Economic Policies Book Series,in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.), Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 10, pages 309-342 Central Bank of Chile.
  • Handle: RePEc:chb:bcchsb:v06c10pp309-342
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2004. "Chile : New Economy Study, Volume 2. Background Documents," World Bank Other Operational Studies 14711, The World Bank.
    2. J. Rodrigo Fuentes S. & Verónica Mies M., 2005. "Looking at Chile’s Economic Dvelopment From an International Perspective," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 8(1), pages 7-33, April.
    3. Roberto Álvarez & Rodrigo Fuentes, 2004. "Patterns of Specialization and Economic Growth in Chile by Sector," Working Papers Central Bank of Chile 288, Central Bank of Chile.
    4. Rodrigo Vergara & Rosario Rivero, 2006. "Productividad Sectorial en Chile: 1986-2001," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(127), pages 143-168.
    5. Juan Rodrigo Fuentes S. & Gonzalo García, 2014. "A Disaggregate Look at Deteriorating Productivity in Chile: Has There Been Structural Change?," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 17(1), pages 04-36, April.
    6. Nganou, Jean-Pascal & Kebede, Ephraim, 2012. "Sources of Growth in Post-Conflict Burundi: From Destruction to Production," MPRA Paper 43577, University Library of Munich, Germany.
    7. Jose De Gregorio, 2004. "Economic Growth in Chile: Evidence, Sources and Prospects," Working Papers Central Bank of Chile 298, Central Bank of Chile.
    8. Cristián Larroulet Vignau, 2003. "Public policies and national dvelopment," Past Working Papers 30, Universidad del Desarrollo, School of Business and Economics.
    9. Francisco Rosende R., 2002. "El Desafío del Crecimiento Económico en Chile," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 83-88, April.
    10. Cristián Larroulet Vignau, 2016. "George Stigler and His Influence on the Transformation of the Chilean Economy," Serie Working Papers 44, Universidad del Desarrollo, School of Business and Economics.
    11. Carlos Massad A., 2002. "Articles A Challenges of Economic Growth: an Overview," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 5-10, April.
    12. Rómulo A. Chumacero, 2002. "Is There Enough Evidence Against Absolute Convergence?," Working Papers Central Bank of Chile 176, Central Bank of Chile.
    13. World Bank, 2004. "Chile : New Economy Study, Volume 1. Executive Summary and Policy Recommendations," World Bank Other Operational Studies 14710, The World Bank.
    14. Klaus Schmidt-Hebbel, 2006. "Chile's Economic Growth," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(127), pages 5-48.
    15. Jorge Marshall R., 2002. "El Camino de las Reformas," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 77-82, April.
    16. Verónica Mies & Rodrigo Fuentes, 2005. "Mirando el Desarrollo Económico de Chile: Una Comparación Internacional," Documentos de Trabajo 287, Instituto de Economia. Pontificia Universidad Católica de Chile..
    17. Claudia De la Huerta & Javier Garcia-Cicco, 2016. "Commodity Prices, Growth and Productivity: a Sectoral View," Working Papers Central Bank of Chile 777, Central Bank of Chile.
    18. Andrea Tokman R, 2005. "Diagnosis and Propasals for Chilean Education," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 8(1), pages 35-52, April.
    19. Rodrigo Vergara, 2005. "Productividad en Chile: Determinantes y Desempeño," Documentos de Trabajo 296, Instituto de Economia. Pontificia Universidad Católica de Chile..
    20. Rodrigo Fuentes & Mauricio Larraín & Klaus Schmidt-Hebbel, 2004. "Sources of Economic Growth and Total Factor Productivity in Chile," Working Papers Central Bank of Chile 287, Central Bank of Chile.
    21. Claudio Candia & Medardo Aguirre & Natalia Correa & María J. Herrera, 2016. "La productividad total de factores en el sector manufacturero chileno," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(35), pages 229-255, July-Dece.
    22. Andrea Tokman, 2004. "Education and Economic Growth in Chile," Working Papers Central Bank of Chile 289, Central Bank of Chile.
    23. J. Rodrigo Fuentes, 2011. "Una Mirada Desagregada del Deterioro de la Productividad en Chile: ¿Existe un Cambio Estructural?," Documentos de Trabajo 401, Instituto de Economia. Pontificia Universidad Católica de Chile..

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